The world of business isn’t a perfect place by any means. There are problems in every business, from start-up to multi-national corporations. Whether that’s a problem with employee moral or ethical decision-making from top level managers. Every business has their own unique problems, but there are a lot of problems that the majority of businesses share.
Business is quite obviously a staple that holds this country together, and on a larger scale, a staple that holds this world together. Without technology and innovation, there would be no business which means that most of us would be out of a job. According to Bloomberg, 80% of businesses will fail within the first 18 months of having their doors open. Imagine if we could cut that percentage in half. Think about the number of jobs and the positive affect that these additional businesses would have on the economy. Let me just go ahead and tell you that the impact that that would have would be amazing. But, we have to find the formula to make that happen first. So, today, we are going to look at the problems that cause businesses to fail and what can be changed in order to create more successful businesses.
One of the problems leading businesses to failure so early in their life is poor leadership. As the founder of a business, you have to ensure that you are hiring management that fits in with the business mission that you have in mind. You want managers who are going to align themselves with the goals and aspirations that you have for the company. I’m not saying that there is something wrong with disagreements. You don’t want managers who are going to agree with everything that you say. You want them to question the decisions you make and challenge you to be better every day, but you don’t want them to be on their own separate agenda. You have to have managers who are willing to buy into the plan and the process you put in place so that they can deliver that willingness down to other employees. The decision to accept the company’s mission starts with management, and if you hire the correct people with the correct attitude towards the business, they will inspire employees who will make the business succeed.
Every now and again, a business will come straight out of the gates running. Let’s say that Jason opened up his own luxury men’s clothing store. As soon as the store opens, the products are flying off shelves. Jason can’t even keep up with the demand. By the end of the week, he only has a few things left that people come in and pick over. Jason realizes that the demand for his clothes are so high that he should open a few other stores. That’s fine, but there are some problems that could come with this.
Jason wants to have control over the performance of his teams. However, when you start having to juggle many locations, that can be a very difficult task. Especially if the location of each building is spread out significantly, it is very hard for the Jason to make it around to each store to run performance checks as often as is needed.
A great way to manage performance across multiple locations is by giving your managers at each location a specific checklist that they use to monitor each of the employees. Regular communication is key, whether that is a conference or video call with the managers, or regular visits to the actual location, Jason has to keep in contact with each location.
Poor Financial Management
According to SmallBizTrends.com, 40% of small businesses that survive make a profit, while 30% break even, and the other 30% are losing money. Financial management is an integral part of keeping businesses’ doors open. You have to know, or have someone keeping track of where all of the money in your business is going. A professional accounting program can help you to do this in a proficient way.
Another important financial aspect of you company is your telecom plans. The fact of the matter is, someone needs to be keeping track of the technology in the company because we know that technology is at the heart of all the transactions, processes, information, and efficiencies that surround your company. It is imperative to a company that the technology that it’s using is giving you the largest benefit that it can. It is also vital that the company is not overpaying for that technology. Outsourcing the reviewing of invoices and data infrastructure to a third-party could give an objective look into the substructure of the company and an amazing money-saving opportunity.
That is where Espy Services comes in. Espy is here to take the burden completely off of your company. We understand the time factor that comes with trying to review your own invoices. It just takes too long. Here at Espy, we have professionals who are trained to find every penny of savings in your invoices while you sit back and watch. We take over the reins, which gives you more time to devote to the important work that you should be doing.
There you have it. Three major reasons that business start-ups end in failure, but now, we have solutions to fix that problem. First of all, make sure that you are hiring management that believes in your culture and your mission. Next, be aware of over expansion and the implications that come with it. If you do decide to expand, take the precautions we discussed. And finally, make sure you are making sound decisions when it comes to your financials. They are at the heart of everything you do as a business.
As always, thanks for reading. Have a wonderful day and enjoy yourself. We will see you next week.
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